ParityUSD
Stablecoin BCH-Backed DeFi Borrow
The Parity protocol brings the full power of DeFi to Bitcoin Cash by introducing ParityUSD, an over-collateralized stablecoin on BCH.
The Parity protocol brings the full power of DeFi to Bitcoin Cash by introducing ParityUSD, an over-collateralized stablecoin on BCH.
ParityUSD is a novel decentralized stablecoin project on CashTokens. ParityUSD is issued by users creating over-collateralized loans with Bitcoin Cash as collateral. The ParityUSD stablecoin is designed to be directly redeemable for the underlying BCH.
You can stake ParityUSD in the Stability Pool and earn BCH yield on your stablecoin holdings.
ParityUSD is a BCH-backed stablecoin on CashToken, directly redeemable against Bitcoin Cash.
ParityUSD is a decentralized protocol managed by smart contracts on the Bitcoin Cash.
The stability mechanism of ParityUSD which keeps the price stable ("pegged") at a $1 value consists of 2 parts: redemptions and dynamic interest rates. Redemption means anyone can convert ParityUSD for $1 worth of Bitcoin Cash, this puts a lower bound on the stablecoin price through arbitrage. Dynamic interest-rates balance the supply and demand for stablecoins, pushing the value back to the $1 peg.
ParityUSD builds upon the Liquity V2 protocol, an evolution of the original Liquity V1. Liquity V1 brought innovations such as redemptions and instant liquidations, and Liquity V2 enhances these features with the addition of market-driven interest rates, improving overall efficiency and adaptability.
When you create a loan to borrow ParityUSD against your Bitcoin Cash collateral you gain additional liquidity without selling your BCH. ParityUSD loans enable BCH holders to borrow up to 90% of their collateral value in ParityUSD. Borrowers need to monitor their loans to stay below this maximum ratio not to be liquidated.
